RESOLUTION
On the Implementation of Cluster Policy in the Kyrgyz Republic
Dated April 29, 2023, No. 231
In order to practically implement the state investment policy, to ensure the efficiency of private and public investments in the Kyrgyz Republic, in accordance with Articles 13, 17 of the Constitutional Law of the Kyrgyz Republic "On the Cabinet of Ministers of the Kyrgyz Republic", the Cabinet of Ministers of the Kyrgyz Republic resolves:
To designate the Ministry of Economy and Commerce of the Kyrgyz Republic as the authorized state body for the development and implementation of cluster policy in the Kyrgyz Republic. The Ministry of Economy and Commerce of the Kyrgyz Republic is tasked to:
- Develop the relevant regulatory legal acts of the Kyrgyz Republic in the field of cluster policy within a three-month period.
- Establish a permanent interdepartmental commission for the implementation of cluster projects, consisting of deputy heads of ministries and departments, authorized representatives of the President of the Kyrgyz Republic in regions, local state administrations, local self-government bodies, and representatives of the business community.
- Develop and approve the Work Plan of the permanent interdepartmental commission for the implementation of cluster projects. The organizational, methodological, and other support for the activities of the constantly operating interdepartmental commission is to be provided by the Ministry of Economy and Commerce of the Kyrgyz Republic.
- Approve the pilot project "Ski Cluster" in the Issyk-Kul region" in accordance with the appendix.
The control over the execution of this resolution is entrusted to the office for monitoring the decisions of the President and the Cabinet of Ministers of the Presidential Administration of the Kyrgyz Republic.
This resolution comes into force seven days after its official publication.
Chairman
of the Cabinet of Ministers
of the Kyrgyz Republic
A.U. Japarov
APPENDIX
1. General Provisions
A cluster is a group of economic entities from two or more industries, based within certain administrative-territorial units, complementing each other and enhancing the competitive advantages of individual companies and the cluster as a whole.
The purpose of the cluster is regional development, based on improving productivity, competitiveness, profitability, innovation of its enterprises, and employment.
The cluster project implies the development of a regulatory legal framework for the development of the cluster.
Management in the cluster is carried out on a territorial-industry principle with coordinated interaction of state bodies, local self-government bodies, and the business community. The subject of interaction of state bodies, local self-government bodies, and the business community are investments in the development of the infrastructure of this administrative-territorial unit.
The cluster project is considered implemented as the indicators and parameters of regulatory technical documentation (State Standard, Construction Norms and Rules, Sanitary-Epidemiological Rules and Standards, Unified Norms and Rates, and Technical Conditions) are achieved.
The implementation of regulatory technical documentation (State Standard, Construction Norms and Rules, Sanitary-Epidemiological Rules and Standards, Unified Norms and Rates, and Technical
Conditions) in the cluster solves the following tasks:
- Uniting the efforts of representatives of interested state bodies, local self-government bodies, the business community, and the local population in regional development.
- Creating additional jobs for the local population.
- Increasing consumer demand due to an increase in tourist services provided to foreign tourists.
- Increasing the profitability and investment attractiveness of cluster participants.
2. Pilot Project 'Ski Cluster' in the Issyk-Kul Region
The ski cluster in the Issyk-Kul region is a group of enterprises in the region related to the tourism industry and its associated industries. The pilot project 'Ski Cluster' in the Issyk-Kul region envisages the construction of several ski bases with significant project capacity.
The ski resort consists of the following components: a track with a lift, a glacier rink, a hotel complex, catering enterprises, cultural and entertainment establishments, and a medical service center.
The general vision of the perspective of project implementation in the resort zone of the Issyk-Kul region in terms of the number and capacity of ski bases is presented in table #1.
The dynamics of the development of ski tourism, taking into account the construction of ski resorts in the Issyk-Kul region
Table #1| Object Name | Indicators for 2023 | Indicators for 2028 |
|---|
| Ski Resort Zones | 0 | 1 |
| Ski Bases, with capacity | 17 | 22 |
| Less than 500 tourists | 14 | 14 |
| More than 5000 tourists | 0 | 5 |
| Lifts | 25 | 65 |
| Ski Tickets, thousand | 120.0 | 2000.0 |
The list of planned ski resorts with possible characteristics is presented in table #2.
At the same time, the final technical and economic justification will be provided by the authorized state body, determined by the Cabinet of Ministers of the Kyrgyz Republic.
Sources and structures of financing (direct foreign investments, borrowed funds) will be determined by the authorized state body, determined by the Cabinet of Ministers of the Kyrgyz Republic.
Main indicators of the pilot project "Mountain Ski Cluster" in the Issyk-Kul region"
Table #2| # | Characteristics | Names of Settlements | Village Boz-Uchuk | Village Kerege-Tash | Village Chelpek | Village Svetlaya Polyana | Village Dzhergalan | Total |
|---|
1. Total Length of Tracks |
| 1 | Total Length of Tracks | | 20.5 km | 18.1 km | 23.7 km | 22.7 km | 17.3 km | 102.3 km |
2. Total Area of Tracks |
| 2 | Total Area of Tracks | | 131 ha | 75 ha | 170 ha | 235.6 ha | 140 ha | 751.6 ha |
3. Ratio of trails by difficulty |
| 3 | Track Difficulty Ratio | | 18% (slopes > 22°) | Separate Areas | Separate Areas | Separate Areas | Separate Areas | 2.82% |
| 4 | Red (slope 14-22) | | 50% | 55% | 23% | 15% | 11% | 30.8% |
| 5 | Blue (slope 10-14) | | 16% | 19.7% | 54% | 59% | 60% | 41.74% |
| 6 | Green (slope 6-10) | | 16% | 29.2% | 23% | 26% | 29% | 24.64% |
4. Territorial capacity |
| 7 | Average Total Drop | | h = 455 m | h = 750 m | h = 578 m | h = 535.9 m | h = 495 m | |
| 8 | Standard Drop | | H = 4000 m | H = 4000 m | H = 3500 m | H = 3500 m | H = 3500 m | |
| 9 | Average Number of Descents | | k = 8.8 | k = 5 | k = 6 | k = 6.5 | k = 5 | |
| 10 | Total Hourly Capacity | | ΣP = 5500 people/hour | ΣP = 2500 people/hour | ΣP = 5400 people/hour | ΣP = 10400 people/hour | ΣP = 2500 people/hour | ΣP = 26300 people/hour |
| 11 | Skiing Time Day | | N = 6 hours | N = 6 hours | N = 6 hours | N = 6 hours | N = 6 hours | N = 6 hours |
| 12 | Number of Skiers Skiing in 1 Day | | 3750 people/day | 3000 people/day | 5400 people/day | 7500 people/day | 3000 people/day | 22650 people/day |
| 13 | Number of Skiers Starting to Ski in 1 Day | | En = 900 people/day | En = 500 people/day | En = 2400 people/day | En = 2500 people/day | En = 900 people/day | En = 7200 people/day |
| 14 | Total Number of Skiers Starting to Ski and Resting Tourists in 1 Day (20% - Resting) | | E = 5580 people/day | E = 4200 people/day | E = 9360 people/day | E = 12000 people/day | E = 4200 people/day | E = 35340 people/day |
The profit of cluster participant enterprises from the sale of products and services (works) is a source of refinancing further cluster development. The total overall profit from the overall activity of the cluster is directed towards further cluster development.
3. Project Implementation Mechanism
The cluster methodology is based on the normative accounting method. The standard method of accounting is intended to provide a technical, economic, as well as legal basis for calculations and return on investment. The payback calculation is based on the accelerated method of accumulation due to the increased rate of return.
Based on the monitoring results, investment resources will be redirected. The choice of new investments is based on priority preferences: from the most profitable projects to the less profitable projects.
The profit of the enterprises of the cluster participants from the sale of products and services (works) is a source of refinancing for the further development of the cluster. The total total profit from the general activity of the cluster is directed to the further development of the cluster.
4. Expected Results
The assessment of project implementation will be determined by the dynamics of the growth of ski resorts. At the same time, an increase in the number of foreign tourists implies an increase in the volume of products sold by domestic enterprises.
According to world practice, on average, a subject of a ski resort can provide about 750 jobs. It is expected that in related industries, such as catering, housing and communal services, social sphere (healthcare, education, culture, recreation), up to 20,000 additional jobs can be created.
The implementation of the pilot project "Ski Cluster" will be carried out in accordance with the requirements of the legislation of the Kyrgyz Republic on environmental safety and environmental protection. The project does not contradict international treaties, complies with the generally accepted international practice, rules of conducting financial operations. Also, the project will contribute to enhancing the tourist image of the country.
5 Mechanisms for Evaluating Task Performance
Mechanisms for evaluating tasks (uniting efforts, increasing consumer demand, increasing profitability) will be carried out by the corresponding generally accepted methods and approaches indicated in economic literature.
